HSBC plans one-year contingent income callable notes linked to indexes

By Susanna Moon

Chicago, Nov. 22 – HSBC USA Inc. plans to price contingent income autocallable securities due Dec. 14, 2026 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annualized rate of 7.13% if each index closes at or above its coupon barrier level, 60% of its initial level, on a determination date for that month.

The notes will be callable at par on any determination date beginning with the sixtieth date.

The payout at maturity will be par plus the final contingent coupon unless either index finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.

HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is handling distribution.

The notes will price on Dec. 9 and settle on Dec. 14.

The Cusip number is 40433UA48.

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